Analyzing ResMed (NYSE:RMD) and Sensus Healthcare (NASDAQ:SRTS)

Sensus Healthcare (NASDAQ:SRTS) and ResMed (NYSE:RMD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

25.3% of Sensus Healthcare shares are owned by institutional investors. Comparatively, 55.0% of ResMed shares are owned by institutional investors. 11.1% of Sensus Healthcare shares are owned by company insiders. Comparatively, 1.2% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sensus Healthcare and ResMed’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensus Healthcare	$24.41 million	4.21	$490,000.00	$0.29	21.62
ResMed	$4.22 billion	6.85	$897.56 million	$6.51	30.27

ResMed has higher revenue and earnings than Sensus Healthcare. Sensus Healthcare is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sensus Healthcare and ResMed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensus Healthcare	0	0	2	1	3.33
ResMed	0	5	6	0	2.55

Sensus Healthcare presently has a consensus price target of $10.00, suggesting a potential upside of 59.49%. ResMed has a consensus price target of $203.20, suggesting a potential upside of 3.13%. Given Sensus Healthcare’s stronger consensus rating and higher probable upside, research analysts clearly believe Sensus Healthcare is more favorable than ResMed.

Volatility and Risk

Sensus Healthcare has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, ResMed has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Profitability

This table compares Sensus Healthcare and ResMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensus Healthcare	14.70%	9.76%	8.72%
ResMed	20.91%	24.43%	15.70%

Summary

ResMed beats Sensus Healthcare on 10 of the 15 factors compared between the two stocks.

About Sensus Healthcare

Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. It operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN's software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. The company was founded in 1989 and is headquartered in San Diego, California.